Two weeks ago at the Verizon store, they were selling Note 3's for $99 which appear to be at least spec-wise a far better phone.
In between the $99 Note 3 and the $650 Amazon phone there's an entire universe of better phones.
While there's some cool software included with it, I honestly don't think any of the things on show are killer features worthy of the price difference. The main special feature appears to be a "identify this item" which is basically what the amazon app on android already does, except now there's a dedicated button for it.
Do people really walk around identifying items for purchase to comparison shop on Amazon so often a dedicated button needs to be built into the device?
>Do people really walk around identifying items for purchase to comparison shop on Amazon so often a dedicated button needs to be built into the device?
Oh I didn't even know that was a feature. That actually sounds pretty cool to me. I know it's not a strong user behavior at the moment, but plenty of people price shop in brick and mortar stores (I certianly do it every time I'm at Best Buy, but it's just to get Best Buy to price match with Amazon), but maybe if (a) the phone comes down in price and (b) they offer some kind of brownie on top of the feature (like a N% discount over the brick and mortar store's matched price with Amazon, if you physically scan an item and the phone detects via GPS that you're at a storefront?), maybe it can slowly tide people over and change user behavior.
It is a strong behaviour. The 1st ranking website in Greece is a price-comparison website called 'Skroutz'. That's because every one I know, makes 'Skroutz search' before buying an item and compares the price of the item with the online counter-part.
The thing with Skroutz is that you know the shipping cost is about 2 to 4 EUR. But with Amazon you can't tell how much the shipping cost might be, from Amazon-UK/FR/DE/IT to GR.
I simply cannot believe anyone was selling a Note 3 for $99 dollars. $99 dollars down payment on a multi-thousand dollar contract seems far more likely.
Which, along with similar comments I see on nearly every US-focused tech site, leads me to conclude that basically no-one in the US knows how much phones cost, not even literate techies of the kind that hang out on HN.
My best guess as to why Amazon thought they could sell a ho-hum phone for $650 dollars is therefore: to a large degree no-one in the US knows or cares how much their phone costs so reducing the price has little to no impact on sales.
Off contract the phone is $700. You can usually find it on Amazon for ~$500-600.
There's like a $10/mo discount buying the phone then bringing it to VZ to use. At a $600 difference in price (vs. $99 on contract), you can't make the difference up with a $240 reduction in service cost.
So yeah, technically you're right, it's $99 with a 2 year contract, the problem is that people do know what these devices actually cost. Hell, you can look them up on Amazon and ebay while you're in the store and the sales reps will even help you do it. It's just not always cheaper to roll your own.
The problem with Amazon's phone is that when you go phone shopping you just don't see one in the phone stores. If they can only be bought off contract, your effective price for the phone is still north of $400, at least on Verizon. Not even the latest iPhone or Galaxy <whatever> sells in that price range on contract.
> ... to a large degree no-one in the US knows or cares how much their phone costs so reducing the price has little to no impact.
But it's worse than that. Many Americans are such complete consumers that they'll pick the higher-priced item solely because it has a higher price, "reasoning" that, if it has a higher price, then it must have a higher value.
> Many Americans are such complete consumers that they'll pick the higher-priced item solely because it has a higher price, "reasoning" that, if it has a higher price, then it must have a higher value.
App stores and the rush to freemium with IAPs are a counter to your point.
It is a serious addiction of some kind. It wouldn't be so bad if she wasn't constantly seeking my approval for it.. I point out that we haven't used the last juicer and she expects the new one to make me happy because it was half price! I suppose it is just a first world problem.
In between the $99 Note 3 and the $650 Amazon phone there's an entire universe of better phones.
While there's some cool software included with it, I honestly don't think any of the things on show are killer features worthy of the price difference. The main special feature appears to be a "identify this item" which is basically what the amazon app on android already does, except now there's a dedicated button for it.
Do people really walk around identifying items for purchase to comparison shop on Amazon so often a dedicated button needs to be built into the device?